LeapFrog 2005 Annual Report Download - page 108

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LEAPFROG ENTERPRISES, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands, except per share and percent data)
21. Quarterly Financials — Unaudited
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
Year Ended
December 31,
(In thousands, except per share data)
2005
Net sales ................................... $71,859 $ 87,066 $242,820 $248,012 $649,757
Cost of sales ................................ 44,087 49,274 134,108 142,652 370,121
Gross profit ................................ 27,772 37,792 108,712 105,360 279,636
Operating expenses:
Selling, general and administrative .......... 33,209 29,013 32,739 31,226 126,187
Research and development ................ 14,739 14,580 13,958 9,063 52,340
Advertising ............................. 6,493 6,949 13,045 43,527 70,014
Depreciation and amortization .............. 2,430 2,361 2,385 2,966 10,142
Total operating expenses ...................... 56,871 52,903 62,127 86,782 258,683
Income (loss) from operations .................. (29,099) (15,111) 46,585 18,578 20,953
Other items ................................. 904 1,238 692 10 2, 844
Income (loss) before benefit (provision) for income
taxes .................................... (28,195) (13,873) 47,277 18,588 23,797
Benefit (provision) for income taxes ............. 8,316 4,092 (14,492) (4,213) (6,297)
Net income (loss) $(19,879) $ (9,781) $ 32,785 $ 14,375 $ 17,500
Net income (loss) per common share:
Basic .................................. $ (0.32) $ (0.16) $ 0.53 $ 0.23 $ 0.28
Diluted ................................ $ (0.32) $ (0.16) $ 0.52 $ 0.23 $ 0.28
2004
Net sales ................................... $71,632 $ 80,814 $231,094 $256,749 $640,289
Cost of sales ................................ 39,684 44,347 137,541 159,672 381,244
Gross profit ................................ 31,948 36,467 93,553 97,077 259,045
Operating expenses:
Selling, general and administrative .......... 26,769 27,378 29,971 36,692 120,810
Research and development ................ 13,946 13,469 15,242 18,340 60,997
Advertising ............................. 8,686 5,540 15,659 53,378 83,263
Depreciation and amortization .............. 1,793 1,743 2,042 2,380 7,958
Total operating expenses ...................... 51,194 48,130 62,914 110,790 273,028
Income (loss) from operations .................. (19,246) (11,663) 30,639 (13,713) (13,983)
Other items ................................. 1,259 427 38 (198) 1,526
Income (loss) before benefit (provision) for income
taxes .................................... (17,987) (11,236) 30,677 (13,911) (12,457)
Benefit (provision) for income taxes ............. 6,164 3,829 (10,444) 6,380 5,929
Net income (loss) $(11,823) $ (7,407) $ 20,233 (7,531) $ (6,528)
Net income (loss) per common share:
Basic .................................. $ (0.20) $ (0.12) $ 0.34 $ (0.12) $ (0.11)
Diluted ................................ $ (0.20) $ (0.12) $ 0.33 $ (0.12) $ (0.11)
Significant quarterly fluctuations are described in “Item 7. Management’s Discussion and Analysis of
Results of Operations.”
F-32